Solved: Sp represents personal savings this money does not go into, Macroeconomics

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Sp represents personal savings this money does not go into

I learned in a textbook that the formula for I, which represents the investment in the economy, is:

I = Sp + Sb + Sg + (imports minus exports).

Sp represents personal savings. This money does not go into the economy. So why is it counted in this formula?

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Macroeconomics: Sp represents personal savings this money does not go into

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Sp represents personal savings this money does not go into

Reference No:- TGS0667693

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Macroeconomics: Sp represents personal savings this money does not go into

Reference No:- TGS0667693

Recent Questions Asked Macroeconomics

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